Soon, rent a Ferrari or Lamborghini, in Southwest Florida

New company says it has figured out a way to make money renting $200,000 cars in the Sarasota area

By JOSH SALMAN

Suppose you arrived in Southwest Florida in a private charter jet, and were whisked by chauffeured limousine to a multimillion-dollar mansion on the bay.

Once there, you might ogle the yacht you rented and docked outside, but what about wheels?

Not to worry. Entrepreneur Larry Starr has that covered.

The longtime resort and real estate investor has started a new company that offers exotic -- and expensive -- automobile rentals to wealthy vacationers who want to turn heads.

From Lamborghinis to Maseratis and McLarens, AutoXotic has assembled a fleet of some of the world's most prestigious cars for part-time residents in town for a weekend splash or for months at a time.

After two years of planning, the company is slated to officially launch June 1, giving Sarasota one of the few auto rental services of its kind from Atlanta to Miami.

"A lot of people who are in our market for a vacation own one of these exotic cars back home," said Trevor Hind, the company's chief financial officer. "And in an environment like Sarasota, this really goes with the lifestyle."

Just as significantly, if it succeeds, AutoXotic would represent the best indication to date that wealthy consumers, at least, have thrown off the shackles of the Great Recession and are once again indulging in opulence and discretionary spending.

A trio of consumers

The AutoXotic business model relies on a trio of consumers: short-term renters, part-time residents and high-end used car buyers. All three must be active for the company to excel, its owners concede.

The downtown Sarasota firm has set aside about 10 exotic cars for its rental pool, which focuses mostly on weekend vacationers and executives visiting on business.

But starting at $1,250 per day, car enthusiasts can rent that glittery red Ferrari they've dreamed of ever since they jealously watched Tom Selleck behind the wheel of one in the "Magnum P.I." television series.

AutoXotic also hopes to pick up business from more modestly wealthy customers, who typically would rent a Toyota Corolla or similar vehicle while on vacation but who want to splurge on an Aston Martin for a major celebratory event, to impress a date or just to check it off their bucket list.

But the heart of the business derives from what the company calls its "innovative ownership" program.

It allows consumers to enjoy the thrill of owning an exotic sports car for 90 days up to six months each year, with options to switch into a new car every month. The package starts at $30,000.

Starr said the concept caters to wealthy seasonal residents who want to drive an exotic car but don't want to buy one to have it here for a few months or to pay to have theirs shipped here from places like New York or Canada.

The program also encourages renters to actually drive the cars during their 90-day stint. Customers are allowed up to 1,000 miles.

Owners of similarly expensive vehicles typically let their cars collect dust like trophies in garages, driving them little -- if ever -- out of fear of depreciation from mileage and potential wear-and-tear, Starr said.

"It's for someone from New England who comes down each spring for vacation," said Starr, who said he started the business to satisfy his own infatuation with luxury vehicles.

"There are also a lot of athletes who will purchase a car like this just for (Major League Baseball) spring training, or Tampa Bay Lighting players who don't live here in the off-season but want an exotic car to drive while here," Starr added.

"We're even marketing the cars to businesses to give to their top salesman or employees. A bonus is one thing, but you will never forget winning a Ferrari for the summer."

To make the business profitable, Starr estimates he will need to keep his short-term rentals booked 150 days and cars in the innovation program purchased for six to eight months of the year.

Each vehicle in the fleet will start in the innovation program for the first year, then spend another year in the short-term rental pool before it is sold through the company's luxury used-car dealership.

The issue of insurance

Uber-luxury automotive rentals are extremely popular in wealthy destinations such as Miami, Las Vegas and Los Angeles.

And while similar ventures have been tried in Sarasota and elsewhere in Southwest Florida before, the concept has never stuck.

As the economy improves, however, even mainstream rental firms are delving into the luxury end of the business.

Enterprise Rent-a-Car, for instance, one of the nation's largest car rental companies, has rolled out a luxury division that offers Porsches and Audis to customers in Florida.

Profits from Enterprise's luxury vehicle collection have risen by double digits since 2011, the company said.

The problem, for many, centers on insurance. Starr admits it was the biggest hurdle that had to be addressed before launching AutoXotic.

To minimize expense, AutoXotic requires all of its customers to put down a $10,000 deposit. It also makes sure each driver is covered for a minimum of $500,000 worth of damage and injury protection under their personal policies.

The company also has obtained a lofty umbrella insurance plan for any incidents that may sneak through the cracks.

"Surprisingly, short-term luxury rental coverage is already included in most drivers' plans," said Fabio Ruiz, AutoXotic director of operations.

"It is just like if you go out in your Ford Fusion and T-bone a Ferrari on the road. You are still liable."

To minimize risk, the company also has installed a GPS system in each vehicle that allows Ruiz to track their exact location, rate of speed and RPMs in real time. If a customer is driving recklessly, he can issue them a warning and even remotely disable the engine.

When it comes time to sell, the cars also are equipped with a digital tracking system similar to an airplane's black box technology, which will show the buyer every time a previous driver braked, revved the engine or exceeded the speed limit during the life of the vehicle.

Cross marketing

As with almost any business, the key for AutoXotic will be keeping demand high and overhead low, company officials said.

Starr says he has the entire fleet booked for the first six months following the June 1 launch. He also can minimize costs by using legal services, marketing and other costly support staff from his other established businesses.

He already plans to advertise the operation through his vacation rental company, among the largest in Southwest Florida.

One example would be to send a text message to each of the vacationers who booked a stay in Sarasota through his firm, pitching a weekend rental special. He also plans to offer package deals.

Given the investment required to purchase a fleet of AutoXotic's kind, the operation could result in severe losses for Starr and partners if it's not successful.

But timing may be on the company's side, with spending on discretionary items such as luxury watches and boats now rising throughout Florida after withering during the prolonged Great Recession.

Area tourism and home sales also have shown recent upswings.

"It's not surprising to see a retailer of this kind find a niche in the market," said John Fleming, a spokesman for the Florida Retail Federation.

"The auto market is up already this year for almost every kind of dealer, and luxury retailers have been able to withstand the recession better than almost any."